Asset Retirement Obligations

3 Months Ended

Dec. 31, 2023

Asset Retirement Obligation Disclosure [Abstract]

During the three months ended December 31, 2023, TVA's total asset retirement obligations ("ARO") liability increased $81 million as a result of revisions in estimate and periodic accretion, partially offset by settlements related to retirement projects that were conducted during the period. The nuclear and non-nuclear accretion amounts were deferred as regulatory assets. During the three months ended December 31, 2023, $47 million of the related regulatory assets were amortized into expense as these amounts were collected in rates. See Note 8 — Regulatory Assets and Liabilities. TVA maintains investment trusts to help fund its decommissioning obligations. See Note 14 — Fair Value Measurements — Investment Funds and Note 20 — Contingencies and Legal Proceedings — Contingencies — Decommissioning Costs for a discussion of the trusts' objectives and the current balances of the trusts.


Asset Retirement Obligation Activity (in millions)
	Nuclear		Non-Nuclear		Total
Balance at September 30, 2023	$	3,808	$	3,681	$	7,489	(1)
Settlements	(4)		(59)		(63)
Revisions in estimate	—		78		78


Accretion (recorded as regulatory asset)	43		23		66

Balance at December 31, 2023	$	3,847	$	3,723	$	7,570	(1)

Note

(1) Includes $275 million and $272 million at December 31, 2023, and September 30, 2023, respectively, in Current liabilities.